Cooperation in trade, investment: BoI and China’s CNTAC set to sign MoU today

ISLAMABAD: The Board of Investment (BoI) and China National Textile & Apparel Council (CNTAC) are all set to sign a Memorandum of Understanding (MoU) on cooperation in trade and investment during the Textile Cluster Development Conference in Shaoxing, (China), on Thursday (Dec 5), well-informed sources told Business Recorder.

On Wednesday, the Federal Cabinet accorded approval to signing the MoU through in circulation summary of the BoI, the sources added.

Sharing the details, sources said that in line with the Prime Minister’s directive to promote industrial relocation from China and prioritize business-to-business initiatives under CPEC Phase-II, the BoI is strategically targeting seven key sectors with significant potential to attract Chinese industries affected by global trade dynamics and rising labor costs in China.

Chinese investment company to set up textile parks

According to BoI, leveraging on this opportunity, it is promoting the matchmaking between Pakistani and Chinese enterprises in the identified high-potential sectors to promote industrial relocation and foster joint ventures which is being achieved through B2B JV Roadshows in key Chinese cities. Three successful roadshows have already been held, covering the fisheries, leather and footwear, food and vegetables and animal fodder sectors. Upcoming roadshows will focus on textiles, surgical and medical devices, and plastics, further advancing sector-specific initiatives.

The Textile roadshow, held on December 4, 2024 in Suzhou, brought together 13 Pakistani and 52 Chinese textile enterprises. This was followed by the participation of Pakistani companies in the Textile Cluster Development Conference organized by the China National Textile & Apparel Council (CNTAC) in Shaoxing, China, on December 5, 2024. The conference will feature China’s leading textile enterprises, with CNTAC offering a slot for a focused B2B matchmaking session between Pakistani and Chinese companies during the event.

As an outcome of discussions between the Ambassador of Pakistan to China and the Chairman of Ruyi Group, one of China’s leading textile group that signed an MoU with BoI in September 2024 under the Prime Minister’s witness for establishing textile parks in Pakistan, would be signing of an “MoU on cooperation in Trade & Investment” between BoI and CNTAC during the Textile Cluster Development Conference in Shaoxing, China, on December 5, 2024.

The sources said the objective of the MoU is to promote the establishment of textile and apparel parks in Pakistan, foster trade and investment cooperation, and explore joint ventures in the textile and apparel sectors, besides provisions for regular information exchange, facilitating business interests, and encouraging participation in trade exhibitions and business activities.

Ambassador Khalil Hashmi held another virtual meeting with Chairman Qiu Yafii and CEO Su Xiao of Shandong Ruyi Group, who joined from Los Angeles, USA. The discussion focused on two key areas.

Ambassador Hashmi welcomed Chairman Qiu’s suggestion to expand membership of the Counterpart Joint Working Group. The Ambassador also proposed an early meeting of the Joint Working Group of its members towards the end of this month and later Pakistan JWG on Ruyi Group investments. Chairman Qiu proposed discussing this matter further during a dinner meeting with the Ambassador.

Chairman Qiu noted that the Textile Cluster Development Conference and B2B meeting were as of now planned in the morning of 5 December 2024. It would feature a) Presentation by Pakistani Government officials to highlight policies, investment opportunities, and facilitation measures and b) a focused B2B matchmaking session between Pakistani and Chinese companies.

Chairman Qiu proposed signing of a Framework Agreement or MOU between China National Textile and Apparel Council (CNTAC), a semi government entity, and a relevant Pakistani government body such as the Board of Investment (BOI) or the Special Investment Facilitation Council (SIFC).

Copyright Business Recorder, 2024